The Internal Revenue Service (IRS) announced an extension of the tax filing deadline for individuals and businesses in nine states. The new deadline will apply to taxpayers who have been affected by recent natural disasters. The extension comes as a relief for many taxpayers who require additional time to prepare and file their tax returns.
Residents and businesses in Alabama, California, Georgia, New York, Iowa, Mississippi, Arkansas, Tennessee, and Kentucky will benefit from the extension. The IRS confirmed that those affected by severe storms, tornadoes, and other disasters now have until October 16, 2023, to file their federal tax returns and make payments. The original deadline was set for April 18, 2023.
The IRS emphasized that this extension applies to all individual and business taxpayers in the designated disaster areas. This includes filers who have businesses that have been impacted by the disasters. Additionally, those who live outside the designated areas but have records necessary to meet the deadline located in the affected areas also qualify.
The IRS automatically provides filing and penalty relief to any taxpayer with an IRS address of record located in the disaster area. If an affected taxpayer receives a late filing or late payment penalty notice from the IRS, they should contact the agency to have the penalty abated.
Taxpayers do not need to call the IRS to qualify for this relief. However, those affected by disasters who live or have a business outside the disaster area should call the IRS to request relief.
The IRS clarified that eligible taxpayers include those involved in the individual income tax return and various business taxpayers and returns. This also covers farmers who choose to forgo filing an estimated tax return and pay the entire tax due by the return due date.
The nation’s tax collection agency assured taxpayers that ongoing disaster recovery efforts in these areas have necessitated this extension. The IRS is working closely with the Federal Emergency Management Agency (FEMA) to identify areas eligible for relief.
This announcement follows FEMA’s assessment of the impacted regions, which determined significant damage and disruption due to the adverse weather conditions. Taxpayers in these areas are advised to check the IRS’s disaster relief page for more information about the federal tax requirements.
While the extension applies to the federal tax returns, taxpayers should know that this does not necessarily apply to state tax returns. Taxpayers are encouraged to contact their state’s tax agency to determine if any similar relief measures are available on the state level.
The IRS encourages taxpayers who have not been affected by the disasters to file taxes electronically by the original April 18 deadline. Electronic filing is recommended to ensure quick processing and a secure way to file tax returns.
The extension also applies to quarterly estimated tax payments. Those typically due on April 18, 2023, will now be due on October 16, 2023, for the affected taxpayers.
For taxpayers who experienced damage or losses due to the disasters, the IRS offers guidance on how they might claim disaster-related losses on their federal returns. Taxpayers may elect to deduct these losses on their federal tax return for the preceding year, allowing them to receive quick refunds.
The IRS’s decision to extend the deadline aims to provide taxpayers with the needed time to recover and address their tax obligations adequately. This measure seeks to support the financial recovery efforts in the aftermath of the severe weather disturbances.
Taxpayers are advised to stay informed on any further announcements or updates related to tax relief provisions and regulations by visiting the IRS website or consulting with a tax advisor.
